The Hyderabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) set aside a service tax demand against and remanded the case back to the original adjudicating authority for re-evaluation.
In this case, based on the information received Form 26AS, the department demanded a duty of Rs. 73.89 lakhs from the appellant for the period from April 2015 to March 2017.
The appellant’s counsel contended that the department failed to provide the relevant documents along with the show cause notice, leaving the appellant unable to explain the reasons for the alleged non-payment of service tax.
The counsel on behalf of the department argued that the original adjudicating authority had passed a detailed order after considering all relevant documents and arguments. The counsel argued that the appellant had not raised the issue of non-receipt of documents during the personal hearing or in their reply to the show cause notice.
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The bench noted that the appellant had stated several reasons, including the COVID-19 pandemic and a fire accident in their office, for their inability to provide the necessary documents and explanations during the adjudication process. In the interest of fairness and justice, the bench decided to remand the case back to the original adjudicating authority for a fresh hearing. The appellant was allowed to produce all possible evidence to support their claim that the income in question did not arise from taxable services or was otherwise exempt.
The adjudicating authority was also directed to reconsider the issue of limitation.
The bench further observed that “the Adjudicating Authority should also consider these judgments along with any other judgment where deliberate withholding of information would tantamount to suppression as indicated in the Order-in-Original earlier. However, it is made clear that we are not expressing any view either on merit or on limitation aspect at this juncture.”
The CESTAT, comprising A.K. Jyotishi (Technical Member) and Angad Prasad (Judicial Member), disposed of the appeal by way of remand.
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